New Delhi: Amidst the Opposition’s allegations of ‘senseless’ imposition of the Goods and Services Tax (GST), the Central Government on Friday clarified that there would be no tax on rent from residential units if they are not used by business entities.
The Opposition party leaders were alleging that the Government had brought the rent on residential flats and premises under 18% GST slab. Sharing a tweet by a Delhi Congress leader citing that 18% GST is being levied rent for residential flats, party leader Jairam Ramesh said: “After senseless GST on food items of daily consumption, now this.”
Trinamool Congress leader Saket Gokhale also resorted to micro-blogging site to vent their anger over realisation of tax on rent from residential houses. “Why? Because the Modi govt will now be charging GST to tenants on their house rent,” he wrote on the twitter.
In another tweet, Gokhale said “Amidst a massive price rise, the cruel money-grabbing Modi govt is determined to squeeze every penny out of the pockets of ordinary Indians.”
The Press Information Bureau’s Fact Check team said there will be no GST on properties rented for residential use by a private person. It also said that GST would not be levied even if a proprietor or partner of firm rents a residence for personal use.
A section of the media had alleged that property owners in Delhi, Mumbai, Bengaluru, Patna and Ranchi had begun increasing rent midway through the year claiming that the rent has been brought under the GST net. Officials of the commercial taxes department said that false messages are being circulated on the social media either due to lack of understanding of taxation or to justify the hike in rent in view of price rise on almost all essential commodities.